UAE Gratuity Calculator 2026
Instantly compute your end‑of‑service benefits. Based on the latest Federal Decree‑Law No. 33 of 2021 — full gratuity for resignation or termination, capped at 2 years’ salary.
This free UAE gratuity calculator gives you your exact end-of-service benefit in seconds — based on Federal Decree-Law No. 33 of 2021, Article 51, the law currently governing every private-sector employee in the UAE. Enter your basic salary, years of service, and reason for leaving. The MOHRE gratuity calculator above handles the rest: daily rate, gross gratuity, deduction, and net payable. Below is everything you need to understand how the number is calculated, who qualifies, and what happens if your employer doesn't pay on time.
What is UAE gratuity and why does every expat need this calculator
Gratuity — officially called End-of-Service Benefit (EOSB) or مكافأة in Arabic — is a mandatory lump-sum payment every UAE employer must give to eligible employees when their employment ends. It's not a bonus. It's a legal entitlement under federal law, and it applies whether you resign, are terminated, or your fixed-term contract expires.
The gratuity calculator UAE above is built on Article 51 of Federal Decree-Law No. 33 of 2021, which replaced the 1980 UAE Labour Law effective 2 February 2022. The new law made one critical change that most employees don't know: it removed the old penalty that reduced gratuity when an employee resigned. Under the current law, resignation and termination are treated identically for gratuity purposes — you get the same amount either way, provided you've completed at least one year of continuous service.
How to use this end of service calculator UAE — step by step
Use only your fixed basic salary from your employment contract — not your total package. Exclude housing allowance, transport allowance, commissions, overtime, and bonuses. Under Article 51 of the UAE Labour Law, gratuity is calculated on basic salary only. If you're unsure, check your MOHRE-registered employment contract for the exact figure.
Count from your employment start date to your last working day, including your notice period. Months run from 0 to 11. Unpaid leave days are not counted as continuous service under Article 51(3) — so if you took extended unpaid leave, your actual countable service period may be shorter than the calendar period.
Choose "Resignation / Termination (without misconduct)" for all standard departures — voluntary resignation, employer-initiated termination, or contract completion. Choose "Termination for Gross Misconduct (Article 42)" only if you were dismissed under Article 42 of the UAE Labour Law for serious offences such as physical assault, impersonation, or serious breach of safety rules. Misconduct dismissal results in zero gratuity.
If you have outstanding loans, salary advances, or other amounts owed to your employer, enter the total here. Under Article 51, employers can legally deduct these amounts from your final gratuity settlement. The calculator shows your gross gratuity, total deductions, and net payable separately.
The calculator shows your daily rate (basic salary ÷ 30), total service period, gross gratuity before deductions, deduction amount, and net gratuity payable. The bar chart shows the proportion of gross gratuity versus deductions. If your gross gratuity hits the 2-year salary cap, a notice appears at the bottom.
UAE gratuity formula 2026 — Article 51 explained with worked examples
The gratuity calculator Dubai and all other emirates use the same federal formula under Article 51. It has 3 components: the daily wage, the service tier (21 days or 30 days per year), and the 2-year salary cap.
Step 1 — Daily wage: Monthly basic salary ÷ 30. This divisor is fixed at 30 regardless of how many days are in the actual month.
Step 2 — Gratuity days: 21 days' basic salary for each year of the first 5 years. 30 days' basic salary for each year after 5 years. Partial years are calculated on a pro-rata basis after the first full year is completed.
Step 3 — Cap check: Total gratuity cannot exceed 24 months' (2 years') basic salary, regardless of total service length.
Worked examples — UAE end of service calculator results
| Scenario | Basic Salary | Service | Daily Rate | Calculation | Gross Gratuity |
|---|---|---|---|---|---|
| 1 year service | AED 5,000 | 1 yr 0 mo | AED 166.67 | 21 × 1 × AED 166.67 | AED 3,500.07 |
| 3 years service | AED 8,000 | 3 yr 0 mo | AED 266.67 | 21 × 3 × AED 266.67 | AED 16,800.21 |
| 5 years service | AED 10,000 | 5 yr 0 mo | AED 333.33 | 21 × 5 × AED 333.33 | AED 34,999.65 |
| 7 years service | AED 6,000 | 7 yr 0 mo | AED 200.00 | (21×5×200) + (30×2×200) | AED 33,000.00 |
| 10 years service | AED 15,000 | 10 yr 0 mo | AED 500.00 | (21×5×500) + (30×5×500) | AED 127,500.00 |
| Cap reached (30yr) | AED 20,000 | 30 yr 0 mo | AED 666.67 | Capped at 24 × AED 20,000 | AED 480,000.00 |
Enter your own figures into the UAE gratuity calculator above to get your exact result instantly. The calculator handles partial years, the 2-year cap, and deductions automatically.
Who is eligible for UAE gratuity in 2026
Eligibility under Federal Decree-Law No. 33 of 2021 is straightforward for most private-sector employees. The rules are:
| Condition | Eligible? | Notes |
|---|---|---|
| Expatriate private-sector employee, 1+ year service | ✅ Yes — full gratuity | Article 51, all emirates |
| Voluntary resignation, 1+ year service | ✅ Yes — 100% entitled | New law removed old resignation penalty |
| Termination without misconduct, 1+ year | ✅ Yes — full gratuity | Same formula as resignation |
| Fixed-term contract completion, 1+ year | ✅ Yes — full gratuity | All contracts now fixed-term post Feb 2022 |
| Less than 1 year of continuous service | ❌ No gratuity | Minimum threshold not met |
| Dismissal for gross misconduct (Article 42) | ❌ No gratuity | Forfeiture under Article 42 |
| UAE national private-sector employee | ⚠️ Different scheme | Covered by GPSSA pension, not Article 51 |
| DIFC employee | ⚠️ DEWS scheme | Separate DIFC Employment Law applies |
| ADGM employee | ⚠️ ADGM rules | Abu Dhabi Global Market Employment Regulations |
| Domestic workers (maids, drivers, cooks) | ⚠️ Separate law | Federal Law No. 10 of 2017 applies |
| Part-time / flexible employees, 1+ year | ✅ Pro-rata gratuity | Calculated on hours/days worked under Article 52 |
MOHRE gratuity payment rules — deadlines, deductions, and disputes
Knowing your gratuity amount is only half the picture. Knowing your rights around payment timing, lawful deductions, and dispute resolution is just as important.
The 14-day payment rule — Article 53
Under Article 53 of Federal Decree-Law No. 33 of 2021, your employer must pay your full end-of-service settlement — including gratuity, unused annual leave, and any other dues — within 14 calendar days from your last working day. This is not a target. It's a legal deadline. Employers who miss it are exposed to penalties including fines and labour complaints.
If your employer delays beyond 14 days, do not sign any final settlement documents until the full amount is in your bank account. You can file a free complaint through the MOHRE official website, the MOHRE app, or at a Tasheel service centre. MOHRE will mediate the dispute and, if unresolved, refer it to the Labour Court.
Lawful deductions from gratuity
Employers can legally deduct from gratuity only amounts the employee genuinely owes: salary advances, employer loans documented in writing, and any amounts ordered by a court. They cannot deduct notice period pay, training cost recovery unless explicitly permitted by contract, or general performance penalties. The deduction field in the end of service calculator UAE above lets you model your net payable after any deductions.
What happens if gratuity is underpaid
If your employer offers a settlement that's lower than what your calculation shows, do not sign the receipt until you've verified the numbers. The gratuity formula under Article 51 is fixed — there's no employer discretion on the rate. File a complaint with MOHRE if there's a shortfall. UAE Labour Courts consistently rule in favour of employees in clear underpayment cases.
Gratuity calculator Dubai, Abu Dhabi, and UAE free zones — what's different
The standard Article 51 formula in the gratuity calculator UAE above applies to all mainland UAE employees under MOHRE jurisdiction, including workers in Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Fujairah, and Umm Al Quwain, and workers in most free zones including DMCC, JAFZA, DAFZA, and ADIB.
Two jurisdictions operate different systems and are not covered by this calculator:
DIFC (Dubai International Financial Centre) — employees here are governed by the DIFC Employment Law and the DEWS (Dubai Employment and Workplace Savings) scheme. DEWS replaced traditional gratuity with mandatory monthly employer contributions of around 5.83–8.33% of basic salary into an investment account. Employees who transferred to DEWS before 1 February 2022 had their pre-DEWS accrued gratuity ring-fenced.
ADGM (Abu Dhabi Global Market) — operates under separate Abu Dhabi Global Market Employment Regulations. End-of-service calculations follow ADGM rules, not the federal MOHRE formula.
If you work in DIFC or ADGM, consult your HR department or employment lawyer for your specific entitlement calculation. For everyone else — mainland UAE and all other free zones — the calculator above gives you the correct number.
Using your UAE end-of-service benefits for financial planning
Gratuity is often the largest single lump-sum payment an expatriate receives during their UAE career. On a basic salary of AED 15,000 after 10 years of service, gratuity comes to AED 127,500 — more than 8 months' total package for many employees. Planning how to use it before your final day removes a lot of financial stress.
Voluntary End-of-Service Savings Scheme — Cabinet Resolution 96 of 2023
Since Cabinet Resolution 96 of 2023, UAE mainland employers can voluntarily enrol in an alternative End-of-Service Savings Scheme, where monthly contributions go into regulated investment funds rather than accruing as a liability on the employer's balance sheet. If your employer has joined this scheme, your end-of-service benefits accumulate in a funded account — similar to DIFC's DEWS — and the Article 51 lump-sum gratuity formula still applies to the accrued portion before the scheme start date.
Check with your HR department whether your employer participates. If they do, your statement from the fund administrator shows your current balance. If they don't, the standard Article 51 calculation in the MOHRE gratuity calculator above is what applies.
Tax on UAE gratuity
UAE gratuity is completely tax-free. The UAE has no personal income tax, and gratuity payments are not subject to any federal or emirate-level tax. The amount you calculate is the amount you receive.
Frequently asked questions — UAE gratuity calculator
Under Article 51 of Federal Decree-Law No. 33 of 2021, UAE gratuity is calculated as: (Basic monthly salary ÷ 30) × 21 days for each of the first 5 years of service, then (Basic salary ÷ 30) × 30 days for each additional year beyond 5. Partial years after the first full year are calculated pro-rata. The total cannot exceed 2 years' basic salary. Enter your figures into the UAE gratuity calculator above for your exact result.
Yes. Under the current UAE Labour Law (Federal Decree-Law No. 33 of 2021, effective February 2022), employees who resign voluntarily receive exactly the same gratuity as those terminated by their employer. The old law that reduced gratuity for resignation has been abolished. You need to have completed at least 1 year of continuous service to qualify. Dismissal for gross misconduct under Article 42 is the only scenario where gratuity is forfeited.
The maximum gratuity payable in the UAE is 24 months' (2 years') basic salary, regardless of how many years you've worked. For example, if your basic salary is AED 20,000, the maximum gratuity is AED 480,000 — even if you've worked for 30 years. The calculator above shows a cap notification when your figures exceed this limit.
Gratuity is calculated on basic salary only, per Article 51. Housing allowance, transport allowance, commissions, overtime, bonuses, and all other benefits are excluded. Only the fixed basic monthly salary stated in your MOHRE-registered employment contract counts. Using total salary instead of basic salary is the most common calculation mistake — it overstates the gratuity amount.
After completing exactly 5 years, your gratuity equals 21 days' basic salary per year, so 105 days' total. On a basic salary of AED 10,000: daily rate = AED 333.33, gratuity = 105 × AED 333.33 = AED 35,000. For service beyond 5 years, the rate increases to 30 days per year for all additional years. So at 7 years with AED 10,000 basic: (5 × 21 + 2 × 30) × AED 333.33 = AED 57,500.
Under Article 53 of Federal Decree-Law No. 33 of 2021, employers must settle all end-of-service dues — including gratuity, unused annual leave, and any other entitlements — within 14 calendar days of the employee's last working day. Failure to pay within 14 days exposes the employer to MOHRE complaints and Labour Court proceedings. If your employer delays, file a free complaint via mohre.gov.ae or the MOHRE app.
Yes. Under Article 51(3), periods of unpaid leave are not counted as continuous service for gratuity purposes. If you took 6 months of unpaid leave during a 7-year employment, your countable service period is 6.5 years, not 7. MOHRE clarified in 2023 that unpaid leave days must be subtracted from the total service period before applying the gratuity formula. This calculator doesn't currently include an unpaid leave field — if you took significant unpaid leave, subtract those days from your service period before entering years and months.
No. UAE gratuity is completely tax-free in the UAE. The UAE has no personal income tax on salaries, bonuses, or end-of-service benefits. The amount calculated by the UAE gratuity calculator above is the gross amount you receive. Note: if you are a tax resident in another country, your home country's tax authority may treat the gratuity as taxable income. Check with a tax adviser in your home country if this applies to you.